As the world continues to transition from fossil fuels to renewables, the market demand for lithium continues to soar. With its vast lithium deposits, Africa stands at the forefront of this boom. But will this be an economic breakthrough or yet another chapter in the continent’s long history of resource exploitation and missed opportunities?.
For centuries, Africa has been the stage where resource wealth turns into paradoxes of poverty and conflict. Lithium, a key component in electric vehicle (EV) batteries and renewable energy storage, is now the latest commodity drawing global interest. The global lithium market, valued at approximately $22.2 billion in 2023, is expected to reach over $89 billion by 2032, according to Fortune Business Insights. African nations like Zimbabwe, the Democratic Republic of Congo (DRC), Namibia, Mali, and Ghana hold significant lithium reserves that are now at the centre of international trade deals.
READ ALSO: Lithium Prices and Sustainable Mining Practices in Zimbabwe
Zimbabwe, home to Africa’s largest known lithium deposits, produced approximately 1,200 metric tonnes of lithium in 2022, positioning itself as a major player in the global lithium supply chain. The country has signed agreements with Chinese firms such as Zhejiang Huayou Cobalt and Sinomine Resource Group, bringing in over $1.4 billion in investments. Similarly, Namibia, through its Uis mine, has been attracting Western investment, particularly from European and Australian companies eager to diversify supply chains away from China.
A Blessing or a Burden?
The discovery of valuable minerals has historically not always translated into prosperity for African nations. The “resource curse” is a phenomenon well-documented across the continent, where resource-rich nations paradoxically experience slower economic growth, weak institutions, and increased corruption. Nigeria’s oil wealth, for instance, has fuelled corruption and environmental degradation, leaving many citizens impoverished despite the billions generated annually. Will lithium follow the same trajectory?
Despite massive foreign investments, Zimbabwe recently banned the export of raw lithium, requiring companies to refine the mineral locally. While this move is aimed at increasing value addition and job creation, the reality is that Zimbabwe currently lacks sufficient refining infrastructure. The DRC, which already suffers from exploitative cobalt mining practices, is also under scrutiny as lithium extraction begins. With artisanal miners often working in hazardous conditions for meagre wages, concerns over labour rights abuses and environmental destruction loom large.
The Race for Lithium: China, the West, and Africa’s Sovereignty
“A bird will always fly to the tree with the sweetest fruit.” This African proverb perfectly encapsulates the fierce competition among global superpowers for Africa’s lithium. China currently dominates over 60% of the world’s lithium refining capacity, and its aggressive investments in Africa signal an attempt to tighten its grip on global battery supply chains. The United States and European Union, alarmed by their dependency on Chinese supply chains, have ramped up efforts to secure direct partnerships with African nations.
For instance, the U.S. has launched initiatives under the Minerals Security Partnership (MSP), aimed at securing ethical and sustainable lithium supply chains. The European Union, through the Global Gateway Initiative, is providing funding to support lithium processing in Africa, ensuring that raw materials do not just flow out of the continent but create local industrialisation opportunities.
However, Africa must navigate this geopolitical scramble carefully. If African governments fail to negotiate favourable terms, they risk becoming mere suppliers of raw materials while wealth is generated elsewhere. Countries must prioritise transparency in mining contracts, enforce strict environmental regulations, and ensure that profits from lithium benefit local communities.
Can Africa Build Its Own EV Industry?
One of the biggest missed opportunities in Africa’s resource history has been the failure to move beyond raw material exports. If Africa truly wants to benefit from its lithium reserves, it must invest in battery production and electric vehicle (EV) manufacturing. South Africa, the most industrialised nation on the continent, is currently exploring the possibility of setting up lithium battery plants. Rwanda, which has invested heavily in renewable energy, has also announced plans to enter the lithium battery industry.
With Africa’s expanding automotive market, projected to be worth $42 billion by 2027, the possibility of developing an indigenous EV industry is real. However, this requires significant investments in infrastructure, skilled labour, and policy support. Without such initiatives, Africa risks remaining a supplier while the real wealth is created in China, Europe, and the U.S.
Environmental Costs
The lithium boom also comes with environmental challenges. Extracting lithium requires significant water resources, a critical issue for African countries already battling water scarcity. In Chile, for example, lithium mining has led to severe water depletion in the Atacama Desert, causing conflicts between mining companies and local communities. African countries must learn from these experiences and establish stringent environmental safeguards to prevent irreversible damage.
Furthermore, poorly regulated mining often leads to deforestation, soil erosion, and contamination of water sources. Reports indicate that lithium mining in Zimbabwe is already impacting local farmers due to water pollution. If not managed properly, the environmental consequences could outweigh the economic gains, turning lithium from a blessing into a liability.
The Road Ahead
If managed well, lithium could be a catalyst for industrialisation, job creation, and sustainable economic growth. However, if history is any guide, there is a real risk that the continent will once again fall victim to external exploitation, internal mismanagement, and environmental degradation.
Governments must focus on long-term strategies: building refining capacities, ensuring fair labour practices, negotiating better deals with foreign investors, and investing in local industries. Transparency in mining contracts, community engagement, and environmental responsibility must become the cornerstone of Africa’s lithium strategy.
Whether Africa’s lithium boom becomes the next oil curse or a gateway to prosperity depends not just on global demand but also on the choices African leaders make today. The lithium rush is here, but will Africa take charge of its destiny this time?
